With a residential leasehold premises in Kilburn, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Anyone in Kilburn with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the relevant Act the freeholder can calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Kilburn with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Regardless of whether you are a tenant or a landlord in Kilburn,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kilburn valuers.
William owned a conversion apartment in Kilburn being sold with a lease of fraction over sixty years outstanding. William informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were William to exercise his statutory right. William obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2014 we were approached by Ms Y Collins who, having moved into a garden flat in Kilburn in April 1997. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable residencies in Kilburn with a long lease were worth £233,200. The average ground rent payable was £60 invoiced monthly. The lease finished on 1 May 2087. Taking into account 61 years remaining we calculated the premium to the landlord for the lease extension to be between £22,800 and £26,400 plus professional charges.
An example of a Freehold Enfranchisement case for a Kilburn flat is 4 & 4A Charteris Road in June 2009. the Tribunal held that the price to be paid for the enfranchisement of 4/4a Charteris Road to be £15,510 for at 4and £15,694 for at 4a This case was in relation to 2 flats. The unexpired term was 70.02 years.